An even better tool for understanding the sub-prime/ credit/ housing/ whole-freaking-economy crisis

I don't care if The New York Times is calling This American Life preciously hipster, maybe they are just jealous because Chicago Public Radio often accomplishes what The Grey Lady has failed to do most days: turn complex problems into a compelling narrative.

Today at the gym, I listened to this episode on how a global tidal wave of capital led to an excess of demand for mortgage backed securities which led to nonsense like No-Income-No-Asset loans and our present troubles. I love This American Life. A lot. To a point that I get a little crazy about it, but this may well be one of the best episodes I have ever listened to. I follow the sub-prime issue very closely, and I learned a lot from this episode. I also laughed several times.

"More-closure solutions" DN Editorial in favor of a reasonable approach to dealing with foreclosure volume

PUP Members and Clients for Reasonable Workout Program before City Council

The Daily News today editorialized in favor of the demands PUP and the coalition of groups working here to prevent foreclosure made before City Council last week.The editorial board wrote:

Those people on the front lines of the issue - such as ACORN and Philadelphia Unemployment Project- seem to agree that pressure must be put on loan servicers to work more closely with local housing agencies to devise workout agreements with homeowners facing foreclosure.

Lenders and servicers can't work fast enough - or don't want to - to handle large numbers of mortgage workouts. But they need to be pressured to come to the table and work with those on the front lines to help homeowners.

Click read more for a breakdown of our demands!

Lies your mortgage company tells you (when you go to meet with them en masse)

So you've led an angry crowd of homeowners to the doorstep of a mortgage company demanding LOAN MODIFICATIONS NOW that freeze your loans at their teaser rates forever. He says, "No can do. I'm legally bound by investors in the secondary market."

Is that true? It might not be. I don't 100% get it, but I might have made some progress today. Wanna see what I think I found? I know you do. Come along!

Harold Brubaker wrote a pretty good analysis of Collaterallized Debt Obligations today in The Inquirer, which are the means by which many mortgage holders have spread around the risk of sub-prime mortgages. I say "pretty good" because I read it three times today before I started getting my head around it. Then I went to Wikipedia and read about the darn things there.

Let me try to put it my way (which might also be wrong, but what the heck), and, more importantly, point out that these things don't work quite the way that the mortgage industry has described. In other words, a teaser freezer seems much more legally feasible than the Greedniks care to admit.

I got your clarity right here: click read more now!

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